Rolta India has repurchased $15 million (over Rs 70 crore) of the outstanding foreign currency convertible bonds (FCCBs). The original issue of zero-coupon FCCBs worth $150 million (Rs 700 crore) is due in 2012.
Bonds with an accreted value of $17.8 million (over Rs 83 crore) have been repurchased at a discount of 15.25 per cent, resulting in a gain of $2.80 million (about Rs 13 crore).
In June 2009, the company had repurchased FCCBs with an accreted value of $43.67 million (around Rs 204 crore, at the current exchange rate of Rs 46.7) through a tender offer at a gross repurchase value of $32.75 million (over Rs 150 crore), resulting in a gain of $10.92 million (Rs 53.50 crore).
The aggregate accreted value of all FCCBs repurchased till date is $61.47 million (nearly Rs 287 crore) and total amount paid aggregates to $47.75 million (nearly Rs 223 crore), resulting in a gain of $13.72 million (over Rs 64 crore) — giving an average discount of 22.3 per cent to the accreted value on all buybacks. This gain has been appropriated into the Profit & Loss and Reserves in the financial statements of the company.
With this, the company has been able to repurchase 35.5 per cent of the initial issue of bonds and the aggregate principal value of bonds that remain outstanding will be $96.69 million (over Rs 451 crore), following completion of the repurchase due for redemption in June 2012.